Margin Requirements

Transactions conducted in the SWFX marketplace may be done on a margin trading basis, enabling a client to execute trades larger than the deposit, amplifying price movement effect. The multi-currency exposure of the account is limited by the total trading line which is calculated by multiplying the Equity of the account by the leverage agreed with Dukascopy Europe. Maximum leverage values applicable to every trading instrument are found in the table below:

* If equity for the self trade account is less than 20 EUR or equivalent in foreign currency, the account may be blocked by Dukascopy Europe.

Minimum margin requirements

In order to protect clients from incurring liability above their equity and protect Dukascopy Europe from associated risks, the following minimum margin policy applies: The minimum equity requirement for the self-trading account is 20 EUR. For accounts with different base currency the minimum amount of equity is calculated at the corresponding rate of the latest settlement. All open positions may be closed and the account may be blocked should the equity on the account reach the minimum margin requirement.

The minimum margin required to open a position depends on the leverage applicable to the trading instrument and current market prices.

Use of leverage

The Use of Leverage is an indicator showing how much of the collateral is currently used by the exposure on the trading account. It is displayed in percentage in real-time and calculated as follows:

Margin call and margin cut policy

Margin call (use of leverage >100%) means a situation where the margin requirements do not allow the client to increase exposure on his account. The client may only close the existing unhedged positions or hedge current positions in order to reduce exposure. Despite the margin call level being reached, the positions will not be closed automatically. The automated system will cancel all placed bid/offer orders that can increase the exposure.

Margin cut or cut-off level (use of leverage ≥ 200%) - if the use of leverage reaches or exceeds 200%, Dukascopy Europe has the right (but not the obligation) to fully reduce the client's exposure by closing existing positions and cancelling pending orders.

Use of leverage

Description

0%

No exposure

< 100%

Normal status

≥100%

Margin call: trader is not able to increase exposure on the account if the use of leverage is more than 100%

Stock CFD Maximum Instrument Exposure

Maximum exposure per single stock CFD is 100,000 USD or equivalent in other currencies. Clients may request to increase maximum exposure to 250,000 USD, in this case leverage will be reduced to 1:2 from default setting of 1:5.

Market

Maximum exposurefor a share CFD

Austria

100,000 EUR

Belgium

100,000 EUR

Denmark

750,000 DKK

Finland

100,000 EUR

France

100,000 EUR

Germany

100,000 EUR

Netherlands

100,000 EUR

Norway

900,000 NOK

Portugal

100,000 EUR

Spain

100,000 EUR

Sweden

950,000 SEK

Switzerland

100,000 CHF

UK

90,000 GBP

US

100,000 USD

Maximum instrument exposure

Maximum net exposure of each currency pair on one trading account is limited to a position of 15 million of primary currency with an exception for USD/HUF, EUR/HUF, USD/CZK, EUR/CZK, USD/RON, USD/ILS, USD/THB which max exposure is limited by 1 million of primary currency. For precious metals and CFD maximum net exposure is specified in the table below:

Instrument

Maximum exposure in contracts (for CFDs) / Oz (for precious metals)

BRENT.CMD/USD

650

LIGHT.CMD/USD

650

GAS.CMD/USD

4 500

DIESEL.CMD/USD

1 800

COFFEE.CMD/USX

940 000

COCOA.CMD/USD

225

SUGAR.CMD/USD

1 430

COTTON.CMD/USX

685 000

OJUICE.CMD/USX

410 000

COPPER.CMD/USD

8 000

USA500.IDX/USD

1 400

USATECH.IDX/USD

650

USA30.IDX/USD

160

DEU.IDX/EUR

250

GBR.IDX/GBP

350

FRA.IDX/EUR

600

AUS.IDX/AUD

750

JPN.IDX/JPY

20 000

HKG.IDX/HKD

1 000

CHE.IDX/CHF

350

ESP.IDX/EUR

300

EUS.IDX/EUR

900

XAU/USD

17 000

XAG/USD

160 000

BTC/USD

30 000 USD equivalent

ETH/USD

30 000 USD equivalent

CHI.IDX/USD

280

DOLLAR.IDX/USD

31 530

NLD.IDX/EUR

4 550

SGD.IDX/SGD

11 220

IND.IDX/USD

270

PLN.IDX/PLN

1 545

BUND.TR/EUR

15 880

UKGILT.TR/GBP

18 678

Clients may request to waive/increase the maximum exposure limit.

In this case the account leverage and leverage on particular instruments will be reduced.

Risk disclosure

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. It is highly recommended to maintain the use of leverage at normal levels. The client must always keep in mind that margin trading increases potential loss, as well as potential profit, and invested funds can quickly suffer losses in situations where the market prices exhibit strong volatility, potentially creating an adverse environment for the highly leveraged participant. The client shall be solely responsible for maintaining sufficient margin in relation to the existing positions.

All trading related information on the Dukascopy website is not intended for Belgian and Canadian residents.

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